Get ready for the 2012 pension reforms

The year 2012 will see the most far-reaching changes to pensions in the UK since Prime Minister Lloyd George first introducedtheOld Age PensionsAct in 1908. But just what do these reforms mean for employers?

The reforms - which will be introduced to ensure that workers save enough for their retirement - will require many employers to devote significantly more time and money to pension provision than they do currently. Employers will be required by law to automatically enrol in a pension scheme all employees over the age of 22 and earning more than the minimum earnings threshold. Also, pension contributions will be made by both employers and staff. Companies and organisations will each be given a specific date, known as a 'staging date', by which the changes have to be in place. These will run from October 2012 through to 2016, starting with larger enterprises.

Such wide-ranging changes make it crucial for all employers to ensure that their workers are kept informed about the changes and how they will be affected.